For those that don't know, DLSS3 is a mode where card takes two frames and tries to guess what frame(s) that would go between
Nope. That's DLSS Frame Generation, which is just a part of DLSS3. DLSS3 also includes advances to DLSS Super Resolution (upscaling) and NVIDIA Reflex (latency reduction) tech.
enabling DLSS3 will always make game's responsiveness objectively worse.
True, but from what I've seen and read; because all games with framegen must include Reflex, the increase in latency is only around 10ms when using framegen This is less than a full frame at 60hz. It may well be that nobody who is playing twitch-shooters competitively is using framegen. That's fine, because generally the engines for those titles don't require framegen for high framerates - they're built for fast rasterization (on appropriately beefy cards). I imagine that will begin to change.
Ergo, it's an anti-feature for gaming.
No. It's perfect for games where a ~10ms additional input delay is acceptable, which is 90% of games.
We're approaching the limit of where traditional rasterization is feasible while still producing generational advances in graphics fidelity, and while staying within a sane heat/power/money budget. We can't just slap a bigger, faster chip on there and call it a day anymore. AI is the best way around this limit. 3D games that use 100% traditional rasterization will probably last maybe 1 or 2 more console generations, then it's done.